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“2020 Foresight Report: Branding and Segmentation in Wealth Management” is the new market research report added to ReportsnReports.com store.

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Managing the wealth of individual clients has become a strategic priority for financial institutions across developed and developing markets. Global wealth management growth in terms of AuM fell dramatically over the last three years (2009–2012) due to the US economic crisis, combined with the Eurozone crisis in 2011, resulting in high market volatility and sapped economic growth globally that eroded investors’ asset values and refrained them from investing in the capital market. However, wealth management organizations are adopting various strategies in order to build a distinctive brand, helping to distinguish their product offerings from their counterparts in order to gain a competitive edge. Moreover, the wealth management organization segments customers under various categories according to wealth holdings. Many private banks and wealth managers across the Asia-Pacific, Americas and Europe have developed sector specific strategies to tap into groups of high net-worth individuals and families through their personal interests, leading to different approaches to segmentation and the factors that need to be taken into account when assessing the needs of different groups. Wealth management companies are segmenting their clients through an asset-based approach or through linear segmentation. Wealth management firms categorize their clients into four segments: the mass market, mass affluent, high net worth individuals (HNWIs) and ultra high net worth individuals (UHNWIs). The mass market segment comprises individual households with a moderate income and property which need only basic banking and investment services. There has been a significant growth in demand for alternative investments among HNWIs in the Asia-Pacific region. In 2011, certain categories of IOPs such as art, jewelry and collectibles delivered higher returns than equities since the global financial and economic crisis, and emerged as an important component of the overall investment strategy for Asia-Pacific HNWIs. China and Hong Kong overtook the US as the world’s largest market for art and antiques and the interest is pushing up the value of indigenous works, as evidenced by the 20.6% increase in 2011 in the World Traditional Chinese Works of Art Index. Significantly, Asia-Pacific HNWIs continue to buy into professional sports, despite the lack of financial returns.

Assess the trends, drivers and implications in the wealth management industry

Make strategic business decisions using historic and forecast market data related to the wealth management business in leading wealth management companies and key target markets

The report details the various trends and drivers impacting the growth and profitability of the industry

Gain insights into the marketing entry strategies, target, and product and customer retention strategies adopted for expansion of wealth management business

Key Highlights

The wealth management industry emerged as a significant segment for the financial sector in the late 1980s. Due to increasing demand from wealthy individuals throughout the world, the industry was equipped with a network of investment advisors to serve high net worth individuals (HNWIs) and ultra high net worth individuals (UHNWIs).

There was a significant increase in the number of HNWIs globally, enabling wealth management organizations to overhaul their business models and target strategies in order to cater to the growing needs of the wealthy individuals.

Wealth management companies are segmenting their clients through an asset-based approach or through linear segmentation. In order to deliver cost-effective service offerings to various levels of wealth management customers, asset management companies need to have a well-defined and executable segmentation plan.

There has been a significant growth in demand for alternative investments among HNWIs in the Asia-Pacific region. In 2011, certain categories of IOPs such as art, jewelry and collectibles delivered higher returns than equities since the global financial and economic crisis, and emerged as an important component of the overall investment strategy for Asia-Pacific HNWIs.

European wealth managers have developed the use of smartphone and tablet applications in France, Germany, Italy, Spain, Switzerland, and the UK. BNP Paribas Fortis is targeting wealthy investors in Belgium by offering James, a video-based access point for financial advisors.